State's dependence on gambling revenue growsCalifornia Online Poker Hearings is set for February

Like an addict, the California Legislature can't stop returning to the allure of gambling. State officials can't seem to stop seeing online gambling as an easy source of revenue for the cash-strapped general fund. But the costs of online gambling - the social costs as well as the economic ones - are too expensive for California.In February 2008, former state Assemblyman Lloyd Levine, D-Van Nuys, proposed a feasibility study of ways for the state to regulate online poker. Turns out there's a loophole in federal law that allows states to have online gambling as long as it doesn't cross state lines.

Game on  still.A measure authored by Sen. Roderick Wright, D-Inglewood, to legalize online gambling in California failed to move out of the Senate Governmental Organization Committee during its hearing Tuesday.

But Senate Bill 1485 is still a work in progress.

The good thing about urgency bills is you can continue to amend them,'' said Wright, who chairs the committee that oversees gaming.

I will prevail on the leadership of this building to try to move something; if we don't, we'll start again in the next session.

The deadline for bills to pass out of policy committees is Friday.

But with the Morongo Band of Mission Indians, the California card rooms that initially endorsed online poker, and three of California's political lobbying associations for tribes pitted against the legislation  as well as anti-gambling groups and the visible absence of key players  the legislation as written was a long shot.

The bill would allow up to three hub operators to have 20-year contracts to conduct online gambling in California for adult residents.

The measure, requiring an undisclosed lump-sum cash offer and up to 20 percent of the hub operator's gross revenues, calls for the Department of Justice to approve all games and rules for play and betting.

While it says tribes would have preference considerations to operate a hub, tribal government associations expressed concerns about the impact online gaming would have on exclusivity provisions and gaming compacts.

Indian gaming groups also say it would dramatically affect bricks- and-mortar casino ventures, as well as the livelihoods of thousands of people that California casinos employ.

Wright conceded, We'll have to drill down further to see what we have to do to make this work.